Statement of Management Responsibility

Departmental management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at March 19, 2012 and reflect the plans described in the Report on Plans and Priorities.

Services provided without charge by other government departments (
Note 12a)

(9,497,606)

(8,442,895)

29,971,075

30,850,347

Variations in Future-Oriented Statement of Financial Position:

Increase (decrease) in accounts receivable and advances

(16,516)

872

Increase (decrease) in prepaid expenses

5,035

2,828

Decrease (increase) in liabilities

967,821

(152,337)

Cash used by operating activities

30,927,415

30,701,710

Capital Investment Activities

Acquisitions of tangible capital assets

227,095

270,069

Proceeds from disposal of tangible capital assets

-

(6,500)

Cash used by capital investment activities

227,095

263,569

Net Cash Provided by Government of Canada

31,154,510

30,965,279

Information for the year ended March 31, 2012 includes actual amounts from April 1, 2011 to February 29, 2012.

The accompanying notes form an integral part of these future-oriented financial statements.

Notes to Future-Oriented Financial Statements for the year Ending March 31

1. Authority and Objectives

Created by an Act of Parliament in 1875, the Supreme Court of Canada is Canada's final court of appeal. It serves Canadians by deciding legal issues of public importance, thereby contributing to the development of all branches of law applicable within Canada. The independence of the Court, the quality of its work and the esteem in which it is held both in Canada and abroad contribute significantly as foundations for a secure, strong and democratic country founded on the Rule of Law. In accordance with the Supreme Court Act, the Supreme Court of Canada consists of the Chief Justice and the eight puisne judges. The Supreme Court of Canada is an important national institution, positioned at the pinnacle of the judicial branch of government in Canada.

The Office of the Registrar of the Supreme Court of Canada (Office) provides all necessary services and support for the Court to process, hear and decide cases. It also serves as the interface between litigants and the Court. The Office has a single strategic outcome: The administration of Canada's final court of appeal is effective and independent. The strategic outcome is further supported by three program activities: Court Operations; Process Payments of Various Allowances to Judges of the Supreme Court of Canada Pursuant to the Judges Act; and Internal Services.

2. Methodology and Significant Assumptions

The future-oriented financial statements have been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities.

The main assumptions are as follows:

The Office's activities will remain substantially the same as for the previous year.

Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.

Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.

Estimated year end information for 2011-12 is used as the opening position for the 2012-13 planned results.

These assumptions are adopted as at March 19, 2012.

For the purpose of the Statement of operations, the activity titled "Process Payments of Various Allowances to Judges of the Supreme Court of Canada Pursuant to the Judges Act" is referred to as "Payments to the Judges".

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2011-2012 and for 2012-2013, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these future-oriented financial statements, the Office has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:

The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.

Implementation of new collective agreements.

Interest rates in effect at the time of issue will affect the net present value of non-interest bearing loans.

Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, the Office will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.

4. Summary of Significant Accounting Policies

The future-oriented financial statements have been prepared in accordance with Treasury Board accounting policies in effect for the 2010-11 fiscal year. These accounting policies, stated below, are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

(a)Parliamentary authorities – The Office is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-Oriented Statement of Operations and the Future-Oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides reconciliation between the bases of reporting.

(b) Net Cash provided by Government – The Office operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Office is deposited to the CRF and all cash disbursements made by the Office are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.

(c) Amounts due from/to the Consolidated Revenue Fund – Amounts due from/to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Office is entitled to draw from the CRF without further parliamentary expenditure authorities to discharge its liabilities.

(d) Revenues – Sales and other revenues are recorded on an accrual basis and accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.

(e) Expenses – Expenses are recorded on an accrual basis:

Vacation pay and compensatory leave are accrued as the benefits are earned under the respective terms of employment.

Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, worker's compensation, interpretation services and security services are reported as operating expenses at their estimated cost.

Employee pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Office's contributions to the Plan are charged to expenses in the year incurred and represent its total obligation to the Plan. Current legislation does not require the Office to make contributions for any actuarial deficiencies of the Plan.

Employee severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

Federally appointed Supreme Court of Canada judges pension benefits: Eligible federally appointed judges and their survivors are entitled to fully indexed annuities providing that the judges meet minimum age and service requirements. The main benefits paid from this plan are recorded on a pay-as-you-go basis. They are included in the Future-Oriented Statement of Operations as a component of salaries and benefits and the judges' contributions are credited to revenue. Contributions made by the Office and judges pertaining to the portion of the plan that relates to indexation of benefits is recorded in a Supplementary Retirement Benefits Account, which is presented in the Future-Oriented Statement of Financial Position as part of Other liabilities, with additional detail provided in Note 10. The Office's contribution towards indexation is expensed at the time it is accrued in the Account in accordance with the legislation. The actuarial liability associated with the Judges' Pension Plan is recorded in the financial statements of the Government of Canada, the ultimate sponsor of the Plan.

(g) Accounts receivable and advances – Accounts receivable and advances are stated at the lower of cost and net recoverable value; a valuation allowance is established for receivables where recovery is considered uncertain.

(h) Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. The Office of the Registrar of the Supreme Court of Canada does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset Class

Amortization Period

Machinery and equipment

3 to 10 years

Office furniture and equipment

5 to 10 years

Computer equipment

3 to 10 years

Computer software

3 to 10 years

Motor vehicles

3 years

Leasehold improvements

5 years

Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

(i) Measurement uncertainty – The preparation of these future-oriented financial statements requires management to make estimates and assumptions that affect the reported amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Actual results could significantly differ from those estimated.

5. Parliamentary Authorities

The Office receives all of its funding through expenditure authorities provided by Parliament. Items recognized in the Future-Oriented Statements of Operations and Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Office has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Authorities requested (in dollars)

Estimated
2012

Planned
2013

Authorities requested:

Vote 50 - Program expenditures

21,716,101

21,721,013

Contributions to employee benefit plans

2,430,614

2,377,465

Judges' salaries, allowances and annuities

5,568,300

5,718,380

29,715,015

29,816,858

Additional authorities anticipated

2,878,798

1,369,514

Forecast authorities available

32,593,813

31,186,372

Authorities presented reflect current forecast of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.

Adjustments for items affecting net cost of operations but not affecting authorities:

Services provided without charge by other government departments

(9,497,606)

(8,442,895)

Amortization of tangible capital assets

(1,464,417)

(1,260,915)

Bad debt expense

(2,029)

(1,927)

Revenue not available for spending

181,896

167,504

Gain (loss) on disposal and write-down of tangible capital assets

-

6,500

Decrease in vacation pay and compensatory leave

(11,520)

(11,694)

Decrease in employee future benefits

1,092,663

(90,755)

Adjustments for items not affecting net cost of operations but affecting authorities:

Acquisitions of tangible capital assets

227,095

270,069

Use of proceeds from disposal of tangible capital assets

-

-

Increase in prepaid expenses

5,035

2,828

31,464,215

31,186,372

Forecast current year lapse

1,129,598

-

Forecast authorities available

32,593,813

31,186,372

6. Accounts Receivable and Advances

The following table presents details of the Office's accounts receivable and advances balances:
(in dollars)

Estimated Results
2012

Planned Results
2013

Receivables from other government departments
and agencies

42,018

42,648

Receivables from external parties

20,563

20,872

Standing advances

16,650

16,650

79,231

80,170

Allowance for doubtful accounts on
receivables from external parties

(4,505)

(4,572)

Total

74,726

75,598

7. Tangible Capital Assets

(in dollars)

Cost

Capital asset class

Opening
Balance

Acquisitions

Disposals and write-offs

Closing balance

Machinery and equipment

973,765

48,165

-

1,021,930

Office furniture and equipment

1,815,238

23,063

18,367

1,856,668

Computer equipment

972,634

88,728

-

1,061,362

Computer software

780,550

31,195

-

811,745

Motor vehicles

162,021

30,000

-

192,021

Leasehold improvements

9,733,644

42,843

-

9,776,487

Assets under construction

18,367

6,075

(18,367)

6,075

Total

14,456,219

270,069

-

14,726,288

Accumulated Amortization

Capital asset class

Opening balance

Amortization

Disposals and
write-offs

Closing balance

Machinery and equipment

737,846

115,636

-

853,482

Office furniture and equipment

1,356,571

93,534

-

1,450,105

Computer equipment

773,788

55,910

-

829,698

Computer software

529,936

61,031

-

590,967

Motor vehicles

151,988

15,034

-

167,022

Leasehold improvements

8,568,054

919,770

-

9,487,824

Assets under construction

-

-

-

-

Total

12,118,183

1,260,915

-

13,379,098

Net Book Value

Capital asset class

2013

2012

Machinery and equipment

168,448

235,919

Office furniture and equipment

406,563

458,667

Computer equipment

231,664

198,846

Computer software

220,778

250,614

Motor vehicles

24,999

10,033

Leasehold improvements

288,663

1,165,590

Assets under construction

6,075

18,367

Total

1,347,190

2,338,036

Disposals of assets under construction represent assets that are put into use in the year and transferred to other capital asset classes as applicable.

8. Accounts Payable and Accrued Liabilities

The following table presents details of the Office's accounts payable and accrued liabilities:

(in dollars)

Estimated Results
2012

Planned Results
2013

Accounts payable to other government departments and agencies

404,402

382,725

Accounts payable to external parties

654,738

648,800

1,059,140

1,031,525

Accrued liabilities

672,383

643,246

Total

1,731,523

1,674,771

9. Employee Benefits

(a) Pension benefits: The Office's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with the Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Office contribute to the cost of the Plan. The forecast expenses are $1,726,177 in 2011-12 and $1,812,418 in 2012-13, representing approximately 1.9 times the contributions of employees.

The Office's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits: The Office provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, estimated as at the date of these statements, is as follows:

(in dollars)

Estimated Results
2012

Planned Results
2013

Accrued benefit obligation, beginning
of year

2,808,658

1,715,995

Expense for the year

201,505

153,911

Expected benefits payments during the year

(1,294,168)

(63,156)

Accrued benefit obligation, end of
year

1,715,995

1,806,750

10. Other Liabilities

The following table presents details of other liabilities:

(in dollars)

Estimated Results
2012

Planned Results
2013

Trust Account - Security Deposit

Liability, beginning of year

389,866

387,916

Deposits

1,000

4,000

Interest

255

927

Reimbursements

(3,205)

(1,047)

Liability, end of year

387,916

391,796

Supplementary Retirement Benefit Account (SRBA)

Liability, beginning of year

1,615,749

1,712,695

Deposits

59,457

61,286

Interest

37,489

41,474

Liability, end of year

1,712,695

1,815,455

Total

2,100,611

2,207,251

Security deposit account was established to record security to the value of $500 deposited by an Appellant with the Registrar of the Supreme Court of Canada in accordance with paragraph 60(1)(b) of the Supreme Court Act. As per section 87 of the Rules of the Supreme Court of Canada, interest is paid on money deposited as security.

Supplementary Retirement Benefit Account ("SRBA") records contributions made by Judges of the Supreme Court of Canada and the matching contributions made by the Employer in accordance with the SRBA Act and the Judges Act.

11. Contractual Obligations

The nature of the Office's activities can result in some large multi-year contracts and obligations whereby the Office will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in dollars)

Goods and Services

Operating Leases

Total

2012

56,368

49,200

105,568

2013

46,803

49,200

96,003

2014

4,000

41,000

45,000

2015

4,000

-

4,000

2016 and thereafter

-

-

-

Total

111,171

139,400

250,571

12. Related Party Transactions

The Office of the Registrar of the Supreme Court of Canada is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Office enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Office received common services which were obtained without charge from other government departments as disclosed below:

(a) Common services provided without charge by other government departments:

During the year, the Office receives services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans, workers' compensation coverage, interpretation services and security services. These services provided without charge have been recorded in the Office's Future-Oriented Statement of Operations as follows:

(in dollars)

Estimated Results
2012

Planned Results
2013

Accommodation services provided by PWGSC

5,329,010

4,184,574

Employer's contribution to health and dental
insurance plans

1,161,167

1,219,179

Workers' compensation cost provided by HRSDC

38,316

36,313

Interpretation services provided by PWGSC

125,860

130,089

Security services provided by the RCMP

2,843,253

2,872,740

9,497,606

8,442,895

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common services organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included in the Office's Statement of Operations.

(b) Other transactions with related parties:

(in dollars)

Estimated Results
2012

Planned Results
2013

Expenses to other government departments and agencies

5,583,416

5,530,002

Revenues from other government departments and agencies

51,568

49,330

13. Segmented Information

Presentation by segment is based on the Office's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 4. The following table presents the forecasted expenses incurred and forecasted revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows: